By Pinky Shah, Sonalee Godbole, Gaurang Gandhi, Chartered Accountants
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2 Processing of returns for A.Y. 2007-08 and
steps to clear the backlog. Instruction No. 12/2008, F.No.225/106/2008-ITA-II
dated 5-9-2008 (reproduced).
Kindly refer to the above.
2. A review of CAP-II statements for June and July 2008 shows
a large pendency of returns for A.Y. 2007-08 in almost all CCIT Regions. The
Board had earlier kept a target of 4-6 months for processing of returns. The
criteria for matching claims for granting TDS certificates were relaxed in June
2006, in order to expedite the processing of pending returns and necessary
instruction in this regard was issued vide Instruction No. 6/2008, dated 18th
June, 2008. However, the number of returns processed has not shown any
significant improvement. A large number of electronic returns for A.Y. 2007-08
as also refund returns are still pending for processing. The Board is concerned
about the slow pace of progress in this regard. In order to speed up the
processing of pending returns for A.Y. 2007-08, it has been decided to adopt the
following strategy :
(1) All pending returns for A.Y. 2007-08 involving refund
claims (including electronic returns with refund claims) must be processed on
priority basis by 30th September, 2008. Where any scrutiny assessment is
pending in these cases, refund should be issued only after completion of the
scrutiny assessment.
(2) For processing electronic returns involving refund
claims, TDS data supplied by DGIT (Systems) on CDs along with AST instructions
68 may be utilised.
(3) Refund returns involving inter-RCC migration of PAN may
be processed on TMS.
(4) Since data of electronic returns is already on the
system, once this is acquired into the RCC data base, it will become part of
the selection process under CASS. Therefore, electronic returns for A.Y.
2007-08 not involving refund claims can be taken up for processing after 30th
September. However, it has to be ensured that all such returns are acquired
and incorporated into RCC data base before the next round of CASS is run.
(5) Returns in forms ITR-4 and 5 filed in paper made by
business assessees and not covered by S. 44AB of the Income-tax Act, 1961
should be taken up for processing on AST at the stations on network on
priority basis at the earliest before the next round of selection through
CASS.
(6) Salary returns for A.Y. 2007-08 in which there is no
refund or demand and the TDS claim is below Rs.5 lakh, may be given the last
priority for processing.
This may be brought to the notice of all concerned for strict
compliance. Any difficulties arising in processing of returns on AST may be
brought to the notice of DGIT (Systems) and, wherever necessary, to the Board.
